Britain’s largest grocer Tesco has agreed to increase workers’ wages by 7%, marking the third pay rise in just 10 months.
From April, staff outside London will be paid £11.02 an hour, up from £10.30, with more than 200,000 set to benefit.
As in other industries, supermarket workers are pushing for higher wages as the cost of living has risen at its highest rate in nearly four decades.
Other supermarkets including Asda, Aldi and Lidl have also increased wages.
Tesco UK Chief Commercial Officer Jason Tarry said the latest increase recognized the “incredible work and dedication” of Tesco staff.
“We know that many colleagues have felt the pressure of rising costs this year and we are fully committed to supporting them with a competitive base salary and exclusive colleague benefits,” he added.
Daniel Adams, country officer for the Usdaw union, which helped broker the deal, said it was a “significant step forward for Tesco retail pay”.
“The company continues to respond positively to the significant pressure our members are facing,” he said.
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Tesco said its latest pay rise represented a 7% increase in base pay and was its “biggest investment ever” in hourly wages.
However, over the past 10 months, the retailer has increased salaries for its employees by about 15.5%, according to Usdaw.
The new rates apply to employees of all ages and exceed the statutory minimum wage, or ‘national living wage’, which is £9.50 an hour, rising to £10.42 an hour from April for those aged 23 and over.
The grocer is also paying more than the Living Wage Foundation’s voluntary rate outside London of £10.90, while meeting the £11.95 rate for staff in the capital.
Similar pay rises followed at other big supermarkets, many of which are struggling to recruit and retain workers.
- Earlier this month, Asda announced it would increase the wages of 115,000 workers by 10%, raising hourly rates outside London to £11.11.
- In January, Aldi started paying at least £11 an hour in its stores nationwide and £12.45 an hour in London. It also increased wages at its warehouses by 20% in February.
- Lidl has increased entry-level rates to £10.90 an hour outside London and £11.95 within the M25.
Tesco’s plans come a month after it said it would ax 1,750 team manager posts at its larger stores while also closing roles elsewhere.
It said a new tier of 1,800 lower-paying shift supervisor positions would take over running its manufacturing facilities.
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